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A Marriage Made in Heaven or Hell: The Landlord - Tenant Relationship

Juliet Rawlings states "twenty years ago the rental industry began its remarkable transformation from a few large landowners to what is now a highly developed rental market"

In the mid 1980's London rents were expensive and each property had a distinctive style.  It was straightforward tenants recognised their preferred styles, letting agents found them easy to please and landlords cashed in.

But shocks within the pension fund industry and the 90's recession forced many people to put their money into bricks and mortar.  Changes in property laws enabled everyone to develop a property portfolio.  The original landlords in central London gave way to a new breed of landlord, one who now owns  - at most - a handful of properties.

At time, the market has been flooded with buy-to-lets.  As a result tenants have become more discerning.  Gone are the days when a tenant could take it or leave it.  Tenants are now spoilt for choice prices are at their lowest this decade but are stable.

Now a successful rental investment must have three key factors: prime location, good condition and sensible pricing.

Relocation vs Lettings
Another major change within the industry has been the rise in use of relocation agents.  In the early 80's there were only a few relocation agencies.  They operated separately from letting agencies and developed strong links with large banks and corporates.  Many now act solely for their tenants, as opposed to letting agents who act for the landlords.  The change in focus has sharpened up the market considerably.  Historically a landlord would never pay for redecoration within the first eighteen months of a tenancy.  Tenants would automatically, at the end of their term, pay for cleaning and any necessary redecoration.

Now, the relocation agents make the decisions as to 'fair wear and tear' and landlords must expect to pay for some cleaning and decorating costs at the end of the term.

Rental properties are now an expensive investment.  However, it is not all bad news for landlords, the market is more highly regulated and stable and agents' fees have remained static for over ten years.

Unlike property sales, landlords can instruct multiple agents.  Three agents should suffice a multi-national, an independent and one other agent further a field.  Most do not charge for marketing and promoting the property.

To lessen dispute between parties, landlords must use a reputable and independent inventory clerk and they must differentiate between a corporate and an individual let.

Tenants do have great influence in the market, but if landlords choose their investment carefully and look after it well, they too, will come out on top.